Report questions viability of Vernon Parish nonprofit group

A report released Monday questions the viability of a Vernon Parish nonprofit that experienced a $164,776 net funding loss.

As of Dec. 31, the report says, the
Vernon Community Action Council, its grant funding having dried up, had a
$141,373 shortfall.
The auditor wrote that the deficiency “raises substantial doubt
about (the organization’s) ability to continue.”

According to the report, plans to cut costs and try to boost revenue within a year are in the works. Officials said they’d
cut staff hours, increase fundraising activities, and sell idle equipment and property.

Because of the its cash flow problem,
the report says, the group failed to make timely payments on federal
payroll taxes in
three quarters last year, leading to more than $18,000 in
penalties and interest. Also, payroll reports were understated by
about $20,000, the report says.

The auditor recommended the group take better steps to estimate its cash needs to avoid missing payroll tax payments.